Pandora increases IPO value by 48 percent
NEW YORK (Reuters) - Online radio company Pandora Media Inc raised the proposed value of its initial public offering by almost 50 percent, hoping to catch the investor fever that has taken Internet companies such as LinkedIn to new heights.
The Oakland, California-based company wants to raise about $161.5 million, representing 14,684,000 shares priced at $10 to $12 each.
Last week, Pandora said in a filing that it planned to raise about $109.5 million with the sale of 13,684,000 shares offered at $7 to $9 each.
The increase in the value of Pandora's IPO is a sign that technology offerings are still a hot part of the market, despite a broader downturn and postponements of other large IPOs like Ally Financial.
The S&P 500 index has lost more than 7 percent from its recent peak early last month.
(For a Reuters Insider story, see: link.reuters.com/zur99r )
Other Internet companies such as social media job recruitment site LinkedIn, China's Renren and "Russia's Google" Yandex have had strong IPOs building on anticipation for potential offerings by Facebook and Twitter.
Still, there is a whiff of concern by critics that soaring IPO values are signs of another bubble, even though the companies going public this in this era make real money. For example, the business model of online daily deal site Groupon, which filed for a public offering last week, has been called into question since it is easily replicated.
Pandora, which runs an online service that allows users to stream free music based on feedback from the listener, has more than 90 million registered users.
But the company has yet to turn a profit. Pandora makes money mainly from advertising. For the three months ending April, Pandora reported revenue of $51 million with a net loss of $6.8 million.
(Reporting by Clare Baldwin and Jennifer Saba; Additional reporting by Rodrigo Campos. Editing by Lisa Von Ahn, Matthew Lewis and Robert MacMillan)
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